Apple's nightmare before Christmas! Tech giant will be BANNED from selling smartwatches in the US THIS WEEK over claims it stole medical technology, landmark ruling says

Apple will be forced to stop selling its Apple Watch in the US this week over claims the devices are running on stolen technology.

Sales of the Apple Watch Series 9 and Ultra 2 will be banned online starting on December 21 and from Apple retail locations starting December 24.

The ruling means the only available Apple watch in the US will be the company's budget SE model.

Industry experts told DailyMail.com it could result in at least a $200 million loss of revenue for Apple during what is one of the most lucrative times of year.

The ruling comes amid a legal dispute over the technology Apple’s smartwatches use to run their blood oxygen feature. 

The move comes after an order in October from the International Trade Commission (ITC) that could bar Apple from importing its Apple Watches after finding the devices violate medical technology company Masimo's patent rights. 

Masimo accused Apple of entering discussions with it for a potential partnership in 2013, only to steal the biotech startup's idea and poach some of its engineers to implement it.

Masimo pioneered a sensor technology that works by emitting light through the skin to consistently monitor blood oxygen saturation.

Masimo sued Apple in federal court in 2020 and again in 2021 after the release of the Apple Watch Series 6, which was the first model to have the blood oxygen feature.

'Apple strongly disagrees with the order and is pursuing a range of legal and technical options to ensure that Apple Watch is available to customers,' the company told The Wall Street Journal. 

DailyMail.com has contacted Apple. 

Dan Ives, managing director for Wedbush Securities, told DailyMail.com: 'We believe two percent of Apple Watch revenues will be at risk this quarter.'

The lawsuit stems from Apple implementing technology that measures blood oxygen on demand.

Blood oxygen level represents the percentage of oxygen your red blood cells carry from your lungs to the rest of your body.

A healthy blood oxygen level is 95 and 100 percent- anything below puts people at risk of hypoxemia, which causes confusion, bluish skin and changes in breath and heart rate.

Consumers are concerned about the news as many have purchased Apple Watches ahead of Christmas. 

But customers can collect their Apple Watch Series 9 or Ultra 2 in-store until December 24, and shipments will still be fulfilled. 

The Apple Watch SE 2 is not impacted by Monday's announcement since it does not feature the blood oxygen sensors. 

Apple implemented a pulse oximeter in its smartwatches starting in 2020. 

Masimo filed its complaint the same year, claiming the tech giant used its medical innovation for its Apple Watches. 

The ITC issued Apple a cease and desist in October due to the lawsuit while it conducted an investigation, which the group upheld.

Joe Kiani, Founder, Chairman, and CEO of Masimo, said in October: ''[The] ruling by the USITC sends a powerful message that even the world's largest company is not above the law.

'This important determination is a strong validation of our efforts to hold Apple accountable for unlawfully misappropriating our patented technology.' 

Apple made the decision to pull its smartwatches from shelves during the review period, noting it is a preemptive measure should the ruling stand.

While the review period will not end until December 25, Apple is preemptively taking steps to comply should the ruling stand, the company said. 

However, the Series 9 and the Ultra 2 are said to be available for purchase outside of the US.

Data shows that Apple shipped 13.8 million Apple Watches in the fourth quarter of 2022, but the tech giant surpassed that this year with 89.4 million units so far. 

Apple believes the ITC's finding was erroneous and should be reversed and intends to appeal the decision to the Federal Circuit.

Masimo accused Apple of poaching its employees, stealing its pulse oximetry technology and incorporating it into the popular Apple Watch, which makes up 60 percent of the market.

A jury trial on Masimo's allegations in California federal court ended with a mistrial in May. 

Apple has separately sued Masimo for patent infringement in a federal court in Delaware and has called Masimo's legal actions a 'maneuver to clear a path' for its own competing smartwatch.

A presidential administration had not vetoed an ITC ruling since 2013 when President Barack Obama's administration overturned an import ban on Apple's iPhones and iPads from a patent dispute with Samsung.

The Biden administration in February chose not to veto a separate import ban on Apple Watches based on a patent-infringement complaint from medical technology company AliveCor.